Of Special Interest
9th December 2011
Sabadell buys CAM, losses guaranteed
Banco Sabadell had won the competitive auction process to acquire Banco CAM (formerly Caja de Ahorros del Mediterraneo). The Spanish rescue fund, FROB, has cleaned up the balance sheet and injected more capital. Sabadell commnts that, "Banco CAM's balance sheet was cleaned-up and strengthened prior to the acquisition, which ensures it can be integrated without impairment for Banco Sabadell's balance sheet. Banco CAM also has additional liquidity guarantees to ensure normal operation over the coming years".
Separately the central bank confirmed CAM had been sold with guarantees against future loan losses.
The acquisition is a major one for Sabadell as CAM's balance sheet is three quarters the size of Sabadell's own. On other measures CAM is close to 60% of the size of Sabadell. Geographically the branches are largely complementary creating a more nationally spread branch. As the name suggests CAM was largely focused on the Mediterranean coast line where it became too involved in property and development for its own good.